The post Kaspa rally powered by leverage, not users – Is a KAS pullback ahead? appeared on BitcoinEthereumNews.com.

Key Takeaways What is driving Kaspa’s recent rally?  Derivative inflows, with open interest surging 42% in 24 hours, are fueling the momentum. Does on-chain data support the rally?  No, declining active addresses and weak UTXO signals suggest caution and potential downside risk. Kaspa [KAS], the layer-1 blockchain token, has been on investors’ watchlists as it records this new capital inflow. The momentum, largely driven by derivatives, does not align with several on-chain factors, signaling that a potential decline is increasingly visible. Derivative inflows spark the rally Kaspa’s derivative market has seen a major surge in inflows, as recorded through open interest over the past day. At press time, Open Interest (OI), which assigns a dollar value to liquidity circulating in the derivatives market, showed that Kaspa’s $66.92 million valuation represents a 42% increase in just 24 hours. Of the additional $27.9 million added, most were controlled by bullish investors, as reflected in the positive OI Weighted Funding Rate of 0.0035%. Source: CoinGlass A positive weighted average indicates that most circulating funds come from investors opening new contracts in anticipation of a rally. This surge comes with a caution: when a rally is driven by high leverage rather than broader market momentum, prices face the risk of a sharp decline. On-chain data doesn’t support KAS On-chain data, which tracks user interactions with Kaspa, signals caution in the market. The most notable indicator is the Unspent Transaction Output (UTXO), which measures cryptocurrency received in a blockchain transaction but not yet spent in subsequent transactions. A positive UTXO reading suggests accumulation, while a negative reading indicates distribution, signaling that investors are unwilling to hold the asset. Source: Kaspalytics Active addresses have fallen sharply. Kaspalytics reports that unique addresses dropped from 513,110 on the the 11th of November to just 11,770, at press time, a…

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Filed under: News - @ November 26, 2025 3:21 am